3 Key Outcomes to Expect From KCB’s Move on Pesapal

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KCB Bank Group has signed an agreement to acquire an undisclosed minority stake in Pesapal Limited, one of East Africa’s leading digital payments providers.

The deal, which awaits approval from the Central Bank of Kenya (CBK), marks a continued push by KCB Bank toward technology-enabled financial services in Kenya’s payments landscape. It also follows KCB Bank’s earlier acquisition of a 75% stake in Riverbank Solutions.

Pesapal currently serves thousands of merchants across Kenya, Tanzania, and Rwanda through point-of-sale devices, mobile payments, e-commerce tools, and QR solutions.

Kenya’s digital economy continues to expand, with CBK data showing mobile money transactions reaching about KSh 8.7 trillion in 2024.

Against this backdrop, the partnership between KCB Bank and Pesapal is expected to shape the next phase of financial services, digital commerce, and embedded finance in the region.

1) Broader SME Lending Powered by Real-Time Transaction Data

One key outcome to expect from KCB’s move on Pesapal is improved financing access for SMEs through data-driven lending.

Pesapal processes millions of merchant transactions daily, offering deep visibility into revenue cycles, inventory turnover, and repayment patterns for micro, small, and medium enterprises.

This data channel creates room for KCB Bank to accelerate cash-flow-based lending instead of relying heavily on collateral.

Small retailers, restaurants, and service providers connected to Pesapal systems could qualify for working capital within minutes through digital channels, including KCB Mobi.

Loans of up to KSh 500,000 may be available based on verified cash flows and real-time merchant performance.

The model can reduce default risks and improve loan pricing, while providing Pesapal with capital for research and product development, including emerging services such as blockchain-secured remittances.

Compliance with Kenya’s Data Protection Act will guide how the two systems integrate to protect merchant and consumer data.

2) Stronger Digital Payments Infrastructure and Merchant Offering

Kenya’s payments industry is dominated by M-PESA, with banks and fintech firms expanding to serve merchants and consumers beyond mobile wallets.

Through the KCB Bank acquisition of Pesapal, merchants will gain access to combined retail payment solutions, enterprise POS hardware, and omnichannel checkout tools.

Key expected developments include:

Integrated KCB-Pesapal payment terminals
Faster settlement for merchant payments
Unified e-commerce and QR checkout options
Potential loyalty programs tied to banking services
Wider access to payment devices for rural retail networks

With KCB’s customer base of more than 33 million accounts, Pesapal’s payment ecosystem will likely expand across supermarkets, fuel stations, hotels, education institutions, and transport operators.

The companies also share expansion footprints in Tanzania and Rwanda, positioning them to compete regionally as digital commerce adoption rises.

3) New Technology Pipelines and Policy-Supported Innovation

The partnership also points to product development in cybersecurity, fraud analytics, cross-border settlements, and export-focused payment rails.

Pesapal’s machine-learning tools for fraud monitoring may enhance KCB Bank’s security stack, while KCB’s forex and treasury capabilities can enable international merchant payouts on Pesapal systems.

CBK’s regulatory sandbox, which continues to evolve to support bank-fintech collaboration, provides a structured environment to test new financial products and compliance frameworks.

Job creation in payment operations and software development, expanded merchant onboarding, and support for women-led and youth-led enterprises are among anticipated economic outcomes.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.